Does gold go down when the stock market crashes?

The problem is that, during a stock market crash, virtually all assets fall in value. However, gold and other precious metals almost always rise, making them a better option than many other investments. The reason gold tends to be resilient during stock market crashes is that both are negatively correlated. In other words, when one goes up, the other tends to go down.

When the price of gold rises dramatically over a short period of time, usually because speculators push prices higher than their intrinsic value, a gold bubble forms. The price may fall on any given day, simply because that day there were more gold sellers than there were buyers of gold on the stock exchanges. Gold prices may also move as investors react to news from other markets, such as changes in interest rate policy. Learn more about the factors that affect gold prices, what makes gold susceptible to bubbles, and historical cases of gold bubbles.